Vanguard's BND Offers Bigger Pay and Lower Fees Than Fidelity's FIGB
The Motley Fool
by newsfeedback@fool.com (Adé Hennis)February 15, 2026
AI-Generated Deep Dive Summary
Vanguard's Total Bond Market ETF (BND) outperforms Fidelity's Investment Grade Bond ETF (FIGB) in terms of both yield and affordability, making it a more attractive option for investors seeking broad exposure to the U.S. bond market. While both ETFs aim to provide diversification across high-grade bonds, BND consistently delivers higher returns with lower expense ratios, positioning it as a stronger contender for those prioritizing cost efficiency and performance.
The article delves into key factors such as expense ratios, where BND charges just 0.03% annually compared to FIGB's 0.25%, a significant difference that can compound over time. Performance-wise, BND has historically outpaced FIGB, with a higher 1-year return rate and comparable or better risk-adjusted returns. Both ETFs maintain high credit quality, focusing on investment-grade bonds, but BND offers superior liquidity and a more diversified portfolio, including exposure to government, corporate, and agency bonds. In contrast, FIGB's focus on investment-grade bonds limits its diversification slightly.
For investors, this comparison underscores the importance of balancing cost and performance when selecting bond ETFs. BND's combination of lower fees and competitive returns makes it a standout choice for long-term strategies. While both funds are viable core holdings, BND's edge in affordability and yield positions it as a more advantageous option for those aiming to maximize returns while minimizing expenses. This highlights the need for investors to carefully evaluate fund costs and performance when building their portfolios.
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Originally published on The Motley Fool on 2/15/2026